Cloudy Forecast, EMC Purchases Virtustream

EMC, a company traditionally known for their storage systems, has announced they are acquiring Virtustream for 1.2 Billion Dollars in cash. This move is another in a series of acquisitions faced on the cloud computing market space over the last few years.

Virtustream has balls in several courts, mainly Infrastructure as a Service, cloud computing management software, and managed services. Founded in 2009, Virtustream obtained several large rounds of funding before being acquired by EMC. Virtustream has been featured in the Gartner Magic Quadrant for Cloud IaaS Worldwide.

xStream is Virtustream’s cloud management software provides a number of integrated features such as chargeback, service level agreements at the application level, compliance tools, and multitennancy between applications. At the heart of xStream is µVM, Virtustream’s resource management layer. xStream and µVM work together by dynamically allowing resource allocation to meet resource needs, ensuring the application level service level agreements are maintained.

The EMC Federation has been seeking to become a large, enterprise provider of various cloud solutions to solve a number of problems. Virtustream is not the first cloud based or cloud enabled company EMC has acquired. Other acquisitions include Twinstrata in 2014. Twin strata’s CloudArray product sought to close the gap between public and private clouds by allowing public cloud storage to be extended into a private cloud on premises, acting as a gateway for cloud storage.

It is easy to see how Virtustream fits into the plans of the EMC Federation. By continuing to acquire storage and cloud companies, the EMC Federation will have the ability to provide cloud services to any customer, for any application, at any price. Virtustream’s 1.2 Billion Dollar price tag isn’t small by any means, but could be a solid way to further enhance EMC’s hybrid cloud platform, which operates with VMware’s hybrid cloud platform as well. This latest acquisition gives the EMC Federation another tool in their arsenal, and it will be interesting to see how their hybrid cloud offerings continue to evolve. More information about EMC’s purchase of Virtustream can be found on Forbes.com.

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